Keralam Bought Power from Congress-Ruled Himachal Pradesh at Exorbitant Rates Without Regulatory Commission Approval

Thiruvananthapuram: The Keralam government, which triggered load-shedding by failing to plan ahead, purchased electricity from Congress-ruled Himachal Pradesh at an exorbitant price without the approval of the state Electricity Regulatory Commission. Although the government was authorised to buy power at a maximum rate of Rs 10 per unit, it paid Rs 14.50 per unit to tackle the crisis.

In emergencies, electricity can be purchased without prior approval, but the law requires an application for the commission’s approval within 15 days. The Kerala State Electricity Board (KSEB) has not even submitted an application so far. The deal, reportedly facilitated through the intervention of AICC general secretary K C Venugopal without seeking the commission’s approval, has raised questions.

The Regulatory Commission had recently criticised the move to continue purchasing electricity at high prices. KSEB had applied for permission to buy power through short-term contracts at rates of up to Rs 20 per unit until April 2027. The rates under other contracts range from Rs 6.99 to Rs 14.89 per unit, with the total expenditure estimated at Rs 336.246 crore.

The proposed contracts are with companies including Tata Power, Jindal, PTC India, Manikaran, RPG Power and Shree Cement. The Regulatory Commission strongly criticised the move to purchase electricity at such high rates.

Meanwhile, protests had erupted in Himachal Pradesh over the decision to supply electricity to Keralam. The transfer took place amid complaints that undeclared power cuts and restrictions were disrupting operations in Himachal Pradesh’s pharmaceutical manufacturing sector.